Part XVII

Collective Investment Schemes
CHAPTER
3A

AUTHORISED CONTRACTUAL SCHEMES

Powers of intervention

Procedure on giving directions under section 261X or 261Z and varying them on FCA’s own initiative
261Z1
1
A direction under section 261X or 261Z takes effect—
a
immediately, if the notice given under subsection (3) states that that is the case;
b
on such date as may be specified in the notice; or
c
if no date is specified in the notice, when the matter to which it relates is no longer open to review.
2
A direction under section 261X may be expressed to take effect immediately (or on a specified date) only if the
FCA
, having regard to the ground on which it is exercising its power under that section, considers that it is necessary for the direction to take effect immediately (or on that date).
3
If the
FCA
proposes to give a direction under section 261X or 261Z, or gives a direction under either section with immediate effect, it must give separate written notice to the operator and the depositary of the scheme concerned.
4
The notice must—
a
give details of the direction;
b
inform the person to whom it is given of when the direction takes effect;
c
state the
FCA
’s reasons for giving the direction and for its determination as to when the direction takes effect;
d
inform the person to whom it is given that representations may be made to the
FCA
within such period as may be specified in it (whether or not the matter has been referred to the Tribunal); and
e
inform the person to whom it is given of the right to refer the matter to the Tribunal.
5
If the direction imposes a requirement under section 261X(2)(a), the notice must state that the requirement has effect until—
a
a specified date; or
b
a further direction.
6
If the direction is given under section 261X(2)(b) or section 261Z(2) or (4), the scheme must be wound up—
a
by a date specified in the notice; or
b
if no date is specified, as soon as practicable.
7
The
FCA
may extend the period allowed under the notice for making representations.
8
If, having considered any representations made by a person to whom the notice was given, the
FCA
decides—
a
to give the direction in the way proposed, or
b
if it has been given, not to revoke the direction,
it must give separate written notice to the operator and the depositary of the scheme concerned.
9
If, having considered any representations made by a person to whom the notice was given, the
FCA
decides—
a
not to give the direction in the way proposed,
b
to give the direction in a way other than that proposed, or
c
to revoke a direction which has effect,
it must give separate written notice to the operator and the depositary of the scheme concerned.
10
A notice given under subsection (8) must inform the persons to whom it is given of the right to refer the matter to the Tribunal.
11
A notice under subsection (9)(b) must comply with subsection (4).
12
If a notice informs a person of the right to refer a matter to the Tribunal, it must give an indication of the procedure on such a reference.
13
This section applies to the variation of a direction on the
FCA
’s own initiative as it applies to the giving of a direction.
14
For the purposes of subsection (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).
Pt. 17 modified (20.2.2019) by The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/325), regs. 1(3), 62 (as amended (31.1.2020 immediately before exit day) by The Financial Services (Consequential Amendments) Regulations 2020 (S.I. 2020/56), regs. 1, 12(b))
Pt. 17 Ch. 3A inserted (6.6.2013) by The Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (S.I. 2013/1388), regs. 1, 3(12) (with reg. 24)